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Put call parity

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The stock of LaDolce Vita Ltd. Currently lists for $360.00 a share, while 1-year European call options on this stock with an exercise price of $150 sell for $290. European put options with the same expiration date and exercise price sell for $69.53. Infer the yield on a 1-year zero coupon government bond sold today.

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This solution uses put-call parity equation to infer the yield on a 1-year zero coupon government bond sold today.

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The stock of LaDolce Vita Ltd. Currently lists for $360.00 a share, while 1-year European call options on this stock with an exercise price of $150 sell for $290. European put options with the ...

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